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NEW YORK ( TheStreet) -- Why should investors stay in the market and endure declines like today's? Jim Cramer said on Mad Money Tuesday that many hedge fund managers may be locking in their gains and going home but home gamers need to do the opposite and be ready to seize the opportunities that are being created.
Cramer said the fundamentals of individual companies always matter, and here in the U.S. -- where commodity prices are falling and employment is on the mend -- those fundamentals are looking pretty good. Today's selloff was not about the U.S., however, it was about Russia, a very real threat to the global economy.
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Put simply, Cramer said that if Russia cuts off the supply of natural gas to Europe, that whole continent will fall back into recession. That would mean that earnings estimates all over the globe would need to be lowered. On the other hand, this crisis is clearly man-made, so if a resolution is found stocks could rally quickly.
That's why Cramer said for now he'd stay the course, picking up high-quality stocks on a pullback. Don't think the world is going to end, he concluded. There are still opportunities being created every day.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Carly Garner over the chart of natural gas heading into the lucrative winter heating season. This time last year Garner called the bottom in natural gas, and she's seeing similar patterns again this year.
Garner used a daily chart of natural gas futures and compared that to the Commitment of Traders, or COT, report. The COT measures the positions of both large and small speculators as well as commercial companies holding futures for hedging purposes. Garner noted that last year, and again this year, large speculators were very oversold, which led to a snapback rally last year that should occur again this year as the bears are forced to cover their short positions.
Turning to a weekly chart, Garner noticed that both the stochastics and the Williams' Oscillator, or WSM, also indicate an oversold condition.
Back on the daily chart, however, the stochastics are not yet in a strong oversold condition, which means more downside could be possible before the rally occurs. With a floor at $3.88, there's not a lot of downside risk, though, which makes buying in now likely the right move.